Malaysia's construction activity rises for fifth straight quarter; but seen slowing in 2Q2023

• “The increment (in 2Q2023 construction value) was supported by double-digit growth in the civil engineering sub-sector, which grew by 10.4% in this quarter (1Q2023: 17.2%). At the same time, the sub-sector of special trade activities recorded higher growth in this quarter by 9.8% compared with 9% in 1Q2023, while the non-residential buildings sub-sector grew modestly by 5.7% in 2Q2023 (1Q2023: 9.6%)," DOSM chief statistician Datuk Seri Dr Mohd Uzir Mahidin said in a statement on Wednesday (Aug 9).

KUALA LUMPUR (Aug 12): Malaysia's construction activity in the second quarter of 2023 (2Q2023) expanded for the fifth straight quarter since 2Q2022, reporting an increase of 8.1% year-on-year (y-o-y) in value of work done to RM32.4 billion, new data from the Department of Statistics Malaysia (DOSM) revealed.

The pace, however, slowed in 2Q2023, compared with a growth rate of 9.4% y-o-y in 1Q2023 and 15.7% y-o-y in 4Q2022.

“The increment (in 2Q2023 construction value) was supported by double-digit growth in the civil engineering sub-sector, which grew by 10.4% in this quarter (1Q2023: 17.2%). At the same time, the sub-sector of special trade activities recorded higher growth in this quarter by 9.8% compared with 9% in 1Q2023, while the non-residential buildings sub-sector grew modestly by 5.7% in 2Q2023 (1Q2023: 9.6%)," DOSM chief statistician Datuk Seri Dr Mohd Uzir Mahidin said in a statement on Wednesday (Aug 9).

"Additionally, value of work done in the residential buildings sub-sector rebounded to 6.9% from a 2.2% contraction registered in 1Q2023,” he added.

Mohd Uzir noted that the civil engineering sub-sector accounted for RM12.1 billion or 37.4% of the total construction value for 2Q2023, contributed mainly by the construction of roads and railway activity worth RM6.5 billion.

In the meantime, the value of work done for non-residential buildings came in at RM9.9 billion (30.7%) for 2Q2023, while value for work done for residential buildings came in at RM7.3 billion (22.7%).

Meanwhile, special trade activities amounted to RM3 billion (9.2%), largely in plumbing, heat and air-conditioning installation (RM900 million) and electrical installation (RM800 million) activities.

Mohd Uzir also said the private sector remained the main driver of growth in the construction sector in 2Q2023, with an increase of 17.3% y-o-y, up from a 10.6% y-o-y increase in 1Q2023. "The value of work done by the private sector amounted to RM20.4 billion or 63.1% of the total construction work done value," he added.

The public sector, with a share of 36.9% or equivalent to RM11.9 billion, saw a 4.8% y-o-y decline in 2Q2023 compared with a 7.4% y-o-y growth in 1Q2023.

Geographically, Mohd Uzir said nearly one-fourth or 23.3% of construction work done value in 2Q2023 was concentrated in Selangor, amounting to RM7.5 billion. This was followed by Johor, with a value of RM3.8 billion or an 11.9% share, the Federal Territory, with a value of RM3.7 billion or an 11.5% share, and Sarawak, with a value of RM3.4 billion or a 10.5% share.

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